American Electric Technologies Announces Filing of Preliminary Proxy Statement Related to Share Exchange Transaction With Stabilis Energy and Amendment to Share Exchange Agreement
HOUSTON, May 09, 2019 (GLOBE NEWSWIRE) — American Electric Technologies, Inc. (the “Company” or “AETI”) (NASDAQ: AETI) today announced that it has filed a preliminary proxy statement with the U.S. Securities and Exchange Commission (the “SEC”) related to its business combination with Stabilis Energy, LLC (“Stabilis”) and its subsidiaries (the “Transaction”) announced on December 17, 2018. The information in the preliminary proxy statement is not complete and may be changed. The combined business will include Stabilis’ small-scale liquefied natural gas (“LNG”) production and distribution business as well as AETI’s existing international businesses. The transaction is expected to close during the third quarter of 2019, subject to approval by the AETI stockholders and other customary closing conditions. AETI also announced that it has amended the terms of its share exchange agreement with Stabilis dated December 17, 2018 (the “Share Exchange Agreement”).
Peter Menikoff, Chairman and Chief Executive Officer of AETI, commented, “The Board of Directors believes that the Transaction continues to be in the best interests of both AETI and its Shareholders.”
Jim Reddinger, President and CEO of Stabilis, added, “We are pleased to proceed with this transaction to create a public company growth platform in the small-scale LNG industry. We believe that small-scale LNG has significant growth potential in North America and beyond, and that this transaction will give us the opportunity to become a leader in that market.”
Pursuant to the amendment to the Share Exchange Agreement dated May 8, 2019 (the “Amendment”): (1) Stabilis will reimburse the Company for up to $650,000 of the Company’s fees and expenses of counsel, investment bankers and accountants in connection with the Share Exchange Agreement and the Transaction; (2) the number of shares of common stock that the Company will issue to acquire Stabilis and its subsidiaries will increase to an aggregate amount equal to 90% of the outstanding shares of the Company’s common stock upon completion of the Transaction; (3) the date on or after which the Share Exchange Agreement may be terminated if the closing of the Transaction has not occurred is extended to September 30, 2019, subject to certain exceptions; and (4) the Company will adhere to an agreed upon budget until the termination or closing of the Share Exchange Agreement, as amended.
Mr. Menikoff commented, “The board determined that it was in the best interest of AETI and its shareholders to adjust the equity consideration in the Transaction in order to receive the substantial contribution by Stabilis towards AETI’s fees and expenses incurred in connection with the Transaction.”
The foregoing description of the amendment to the Share Exchange Agreement is not complete and is qualified in its entirety by reference to the full text of the amendment which will be filed with the Securities and Exchange Commission on Form 8-K in the near future.
Houston Chronicle Highlights Stabilis Energy and LNG: Keep on Trucking: 18-wheelers haul LNG exports into Mexico
Sergio Chapa April 17, 2019 Updated: April 23, 2019 8:58 a.m.
LAREDO — Not all liquefied natural gas exports leave the United States on giant ships from the Gulf of Mexico or Atlantic Coast. Some of them get delivered by 18-wheelers to meet growing demand for energy in Mexico.
While the burgeoning U.S. LNG industry has focused on multibillion dollar coastal export terminals, one company from Houston and another from Mexico City have carved out a niche in the market by using tanker trucks to deliver the supercooled fuel to industrial and agricultural customers south of the border.
The Houston company, Stabilis Energy, opened a $55 million LNG plant capable of producing 120,000 gallons of LNG a day in the South Texas town of George West in March 2015. The plant initially focused on supplying fuel to portable LNG-powered generators at remote drilling and fracking sites, but it has since added at least 10 Texas frac sand mines, out of reach of pipelines and power grids.
Now, Stabilis is tapping into a growing market in Mexico, supplying LNG to a number of industrial customers and greenhouses in Mexico.
“The Mexican economy and population are growing faster than their oil and gas production,” Stabilis Energy Vice President of Sales Steve Stump said. “For them to be able to sustain their growth, they need to import energy.”
AETI Announces Signing of a Definitive Share Exchange Agreement with Stabilis Energy to Create a Leading North American Small-Scale LNG Production and Distribution Platform
HOUSTON, Dec. 17, 2018 (GLOBE NEWSWIRE) — American Electric Technologies, Inc. (NASDAQ: AETI) (“AETI” or the “Company”) has executed a definitive share exchange agreement with privately-held Stabilis Energy, LLC (“Stabilis”) and its subsidiaries to create one of the leading public small-scale liquefied natural gas (“LNG”) production and distribution companies in North America. The combined business will include Stabilis’ small-scale LNG production and distribution businesses as well as AETI’s existing international businesses (the “Combined Company”).
At the closing, Stabilis and its subsidiaries will become wholly-owned subsidiaries of AETI and the existing AETI shareholders will own 11% of the Combined Company. The former owners of Stabilis will own 89% of the Combined Company. After closing, James Reddinger, current President and Chief Executive Officer of Stabilis, will serve as President and Chief Executive Officer of the Combined Company. Casey Crenshaw, the controlling shareholder of Stabilis, will serve as Executive Chairman.
“AETI is pleased to announce this combination with Stabilis,” said Peter Menikoff, Chairman and Chief Executive Officer of AETI. “We believe the transaction will give the Company a substantial North American LNG business to complement its international operations. Additionally, we believe the transaction will benefit AETI by increasing the breadth of its operations to more comfortably support its fixed overhead expenses, de-leveraging its balance sheet, and facilitating access to capital.”
Stabilis is a leader in the small-scale production and distribution of LNG in North America. Demand for natural gas for power generation and heating applications is increasing across multiple end markets, but many of these customers are not directly connected to a pipeline. Natural gas is liquefied so it can be transported efficiently via truck to these off-pipeline applications. LNG can be used to supplement existing natural gas fuel sources or to displace other fuel sources, including diesel fuel, fuel oil, and propane. North America’s abundant supply of natural gas can provide LNG customers lower costs and greater pricing stability when compared to other fuels. Customers utilizing natural gas fuel can also realize significant environmental benefits from reduced emissions of carbon dioxide, particulate matter and sulfur emissions, among others. Stabilis operates its LNG production business under the “Stabilis Energy” brand name and its LNG distribution business under the “Prometheus Energy” brand name, which we believe is one of the oldest and most recognized brand names in the small-scale LNG business.
Stabilis had net revenue of $26.5 million and Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) of $1.8 million during the nine months ending September 30, 2018. Stabilis delivered 26.5 million LNG gallons to its customers over the same period, a 75% increase over comparable 2017 deliveries. Stabilis’ operating assets include a 120,000 LNG-gallon per day production plant in George West, Texas, a 30,000 LNG-gallon per day production plant that is being relocated to the West Texas region, and a fleet of cryogenic rolling stock equipment that is capable of servicing customers throughout North America.
“We believe the combination of Stabilis and AETI will create a leading platform for growth and consolidation in the North American small-scale LNG industry,” said James Reddinger, President and Chief Executive Officer of Stabilis. “Stabilis plans to continue to invest in the assets and capabilities required to provide our customers with a low cost, reliable, and comprehensive LNG solution across North America.”
Following the closing, the Combined Company will continue to operate AETI’s existing Brazilian subsidiary and Chinese joint venture. Art Dauber, former Chairman and CEO of AETI, plans to join the Combined Company as President of International Operations and a member of the Board of Directors. Mr. Dauber will lead the development of Stabilis LNG operations in South America and China. He will also help deliver AETI’s expertise in power delivery and electrical systems to Stabilis’ power generation projects.
Casey Crenshaw, Executive Chairman of Stabilis, added, “We are pleased to combine our investments in AETI and Stabilis to create a public company growth platform in the small-scale LNG industry. We believe that small-scale LNG has tremendous growth potential across multiple end markets in North America, and this transaction gives us the opportunity to grow Stabilis’ footprint aggressively in the near future.”
Upon completion of the transaction, the Combined Company will be renamed “Stabilis Energy, Inc.” and will apply to continue trading on the NASDAQ Stock Market under the symbol SLNG.
Closing of the transaction is subject to certain closing conditions, including approval of the issuance of AETI common stock to acquire Stabilis and other transaction-related matters by the holders of AETI’s outstanding common stock and Series A Convertible Preferred Stock voting as a combined group. Certain shareholders of AETI are entering into a voting agreement concurrently with the definitive agreement pursuant to which they are agreeing to vote their respective shares in favor of the transaction at the special meeting. Each company has agreed to pay the other company’s expenses if the share exchange agreement is terminated under certain circumstances prior to the closing of the transaction. The transaction is expected to close during the first quarter of 2019, subject to customary closing conditions.
AETI’s Board of Directors has determined that the share exchange agreement is fair to and in the best interests of AETI and the holders of AETI’s common stock.
Stabilis is a privately-held company owned by LNG Investment Company, LLC, an entity controlled by Casey Crenshaw. Mr. Crenshaw is also President of The Modern Group, Ltd, a privately owned diversified manufacturing, parts and distribution, rental/leasing and finance business. Mr. Crenshaw, through his investment vehicle JCH Crenshaw Holdings, LLC, is currently an AETI common and Series A Convertible Preferred shareholder. Mr. Crenshaw is also a member of the AETI Board of Directors. As part of the transaction, Mr. Crenshaw will convert all of his AETI Series A Convertible Preferred stock into AETI common stock contemporaneously with the closing. Mr. Crenshaw will also restructure his and his affiliates’ debt investments at Stabilis to reduce leverage at the pro forma Combined Company.
Simmons Energy, a division of Piper Jaffray & Co., acted as transaction advisor and Thompson & Knight LLP acted as legal advisor to Stabilis. Oppenheimer acted as transaction advisor and Locke Lord LLP acted as legal advisor to AETI.
American Electric Technologies, Inc. (NASDAQ: AETI) has scheduled an investor update call on Thursday December 20, 2018 at 10:00 a.m. Eastern Time to discuss this transaction. Individuals who wish to participate in the conference call should dial +1 855-490-5692; passcode 111345 in the United States and Canada. International callers should dial +1 323-794-2442; passcode 111345.
American Electric Technologies, Inc. (AETI) is a leading provider of power delivery solutions to the global energy industry. AETI is headquartered in Houston and has global sales, support and manufacturing operations in Rio de Janeiro, Macaé and Belo Horizonte, Brazil. In addition, AETI has minority interest in a joint venture in Xian, China. AETI’s SEC filings, news and product/service information are available at www.aeti.com.
Additional Information about the Transaction and Where to Find it
The proposed transaction has been approved by the board of directors of AETI and the owners of Stabilis, and will be submitted to shareholders of AETI for approval of the issuance of AETI common stock in connection with the transaction and other transaction-related matters at a Special Meeting of shareholders. In connection with that Special Meeting, AETI intends to file with the SEC a proxy statement containing information about the proposed transaction and the respective businesses of Stabilis and AETI. AETI will mail a definitive proxy statement and other relevant documents to its shareholders. AETI shareholders are urged to read the preliminary proxy statement and any amendments thereto and the definitive proxy statement in connection with AETI’s solicitation of proxies for the Special Meeting to approve the transaction-related matters, because these documents will contain important information about Stabilis, AETI and the proposed transaction. The definitive proxy statement will be mailed to shareholders of AETI as of a record date to be established for voting on the matters related to the proposed transaction. Shareholders will also be able to obtain a free copy of the proxy statement, as well as other filings containing information about AETI, without charge, at the SEC’s website (www.sec.gov). Copies of the AETI proxy statement can also be obtained free of charge by directing a request to Peter Menikoff, CEO of AETI, at (832) 241-6330 or by e-mail to firstname.lastname@example.org.
Participants in the Solicitation
AETI and its directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from AETI’s shareholders with respect to the proposed transaction. Information regarding AETI’s directors and executive officers is available in its annual report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC on March 29, 2018. Additional information regarding the participants in the proxy solicitation relating to the proposed transaction and a description of their direct and indirect interests will be contained in the proxy statement when it becomes available.
Stabilis and its managers, directors and executive officers may also be deemed to be participants in the solicitation of proxies from the shareholders of AETI in connection with the proposed transaction. A list of the names of such managers, directors and executive officers and information regarding their interests in the proposed transaction will be included in the proxy statement for the AETI Special Meeting of shareholders related to the proposed transaction when available.
This press release is not a proxy statement or a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities.
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended. Any actual results may differ from expectations, estimates and projections presented or implied and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “believe,” “projected,” “believe,” “will,” “expect,” “plan,” “may,” “will,” “could,” “should,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, AETI’s expectations with respect to future performance of Stabilis, anticipated financial impacts of the proposed business combination, approval of the transaction-related matters by AETI’s shareholders, the satisfaction of the closing conditions to the transaction and the completion of the transaction.
Such forward-looking statements relate to future events or future performance, but reflect the parties’ current beliefs, based on information currently available. Most of these factors are outside the parties’ control and are difficult to predict. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. Factors that may cause such differences include, among other things: the possibility that the business combination does not close or that the closing may be delayed because conditions to the closing may not be satisfied, including the receipt of requisite AETI shareholder and other approvals, the performance of Stabilis and AETI, and the ability of AETI or, after the closing of the transaction, the Combined Company, to continue to meet The Nasdaq Capital Market’s listing standards; future demand for and price of LNG, availability and price of natural gas, unexpected costs, liabilities or delays in the business combination transaction, the outcome of any legal proceedings related to the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the share exchange agreement; and general economic conditions.
The foregoing list of factors is not exclusive. Additional information concerning these and other risk factors are contained in AETI’s most recent filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC on March 29, 2018 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, filed with the SEC on November 14, 2018. All subsequent written and oral forward-looking statements concerning AETI and Stabilis, the business combination transactions described herein or other matters and attributable to AETI, Stabilis, or any person acting on behalf of any of them are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Neither AETI nor Stabilis undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based.
American Electric Technologies, Inc.
Chief Executive Officer
Prometheus Energy and Summit Natural Gas partner on a new liquefied natural gas (LNG) facility in Missouri
HOUSTON, Nov. 13, 2018 /PRNewswire/ — Prometheus Energy Group Inc. (“Prometheus”), a leading North American supplier of liquefied natural gas (“LNG”) solutions and Summit Natural Gas of Missouri (“Summit”) held a ribbon cutting at Summit’s new LNG facility in Lebanon, Missouri. The facility will increase Summit’s natural gas capacity to fuel the regions impressive economic growth and peak seasonal natural gas requirements.
Prometheus has provided several similar virtual pipeline applications using LNG to utility and industrial customers throughout North America. These applications include solutions for winter peaking, pipeline integrity testing, pipeline reconstruction and natural gas supply for bridging requirements in advance of pipeline connections. Prometheus worked closely with Summit to provide a LNG facility that is modular and scalable in order to support the continued expansion of natural gas capacity in the region as it grows.
“Summit is committed to our partnership with the community of Lebanon by bringing greater energy reliability to the area,” said Summit Utilities’ President and CEO Kurt Adams. “We selected Prometheus to provide this LNG facility based on their extensive experience providing reliable winter peaking services and supporting pipeline growth throughout the country.”
“Prometheus is proud of our capabilities to support Summit on this critical project with clean, domestic and affordable natural gas leveraging our Access LNG supply network,” stated Jim Aivalis, CEO of Prometheus. “We are excited to be a part of this collaborative partnership.”
The LNG facility will operate from November to March this winter season and is designed to provide additional natural gas capacity to the distribution system during periods of high demand.
Prometheus Energy to Participate in Pipeline Infrastructure Panel at Midcontinent LDC Forum in Chicago this Week
HOUSTON, Sept. 10, 2018 /PRNewswire/ — Prometheus Energy Group Inc. (“Prometheus Energy”), is a leading supplier of liquefied natural gas (LNG) to the natural gas utility, pipeline, industrial and oilfield services sectors. Prometheus Energy will lead a panel discussion on use of “distributed LNG” solutions to improve natural gas pipeline operations this week in Chicago at the LDC Midcontinent Forum (“Local Distribution Companies”).
Each year, LDC regional forums bring together all parties involved in the North American natural gas pipeline supply chain — pipeline transmission operators, local gas distribution companies, large commercial/industrial users of natural gas and all the companies that service these different segments. Growth of domestic shale gas production has been one of the most important developments changing the energy use and infrastructure landscape in North America.
Prometheus Energy will discuss how it safely brings mobile LNG supply and technical solutions to minimize the impact of pipeline outages for routine inspections, performing integrity management projects and facility construction. Additionally, many gas utilities and large commercial gas consumers are employing LNG solutions for extended duration to support pipeline gas supply due to unanticipated delays during new pipeline construction.
“The application of LNG for enhancing natural gas pipeline operations has been a key focus for our company over recent years,” stated Jim Aivalis, CEO of Prometheus Energy. “We work closely with all players in the natural gas supply chain to improve their service levels and reduce costs and impacts of pipeline interruption and curtailment. The LDC Forums provide unique access to all players in this critical segment of our national economy.”
Newest Push to Ease Permian Bottlenecks: Use Gas to Power Drills
2018-07-31 10:00:00.2 GMT
Micro LNG plants opens way to truck natural gas to oilfields
It’s abundant, cheap and may slow down need to burn gas off
A truck loads up LNG at a site in Arizona.
By Naureen S. Malik
(Bloomberg) — It’s called micro LNG, and the concept is simple. By super-cooling natural gas, they can pack three times more of it into a truck, which may help the Permian Basin deal with its growing gas excess.
Liquefied natural gas is largely shipped in huge ocean-going tankers. Trucking it lets explorers power drilling operations with a fuel that’s abundant, accessible and cheap, saving them as much as 30 percent in costs versus diesel. An example: As many as five trucks, each carrying about 9,500 gallons of LNG, already trek as much as 400 miles a day in Colorado shale country to make deliveries there.
Next in line may be the Permian in West Texas and New Mexico, where filled-to-capacity pipelines threaten to curtail drilling for both oil and its byproduct, natural gas. Siemens AG and Baker Hughes are now in talks to build multiple small LNG production plants in U.S. shale centers, seeking to create a new outlet for natural gas at a time when drillers are urging regulators to let them burn it off into the air.
“A lot of creative work is going on to lower the wastage and environmental footprint that natural gas has in the absence of pipeline delivery,” said Ramanan Krishnamoorti, chief energy officer at the University of Houston.
While crude prices have risen, gas prices have barely budged nationwide and in the Permian they are trading at the biggest discounts to the U.S. benchmark since 2009. So producers to pipeline owners and services companies are looking to put gas to work to not only eat into that excess supply but cut costs and reduce methane emissions, a greenhouse gas contributing to global warming.
‘Lot of Activity’
“We are seeing a lot of activity in the Permian” with Siemens potentially installing 10 to 15 small modular LNG plants by the end of 2019, said Michael Walhof, director of sales for distributed LNG solutions, a division of Siemens.
Houston-based Prometheus Energy Group Inc. has been trucking LNG to producers in the Denver-Julesburg Basin for years, according to Chief Executive Officer Jim Aivalis. But as oil prices have risen lately so has demand, he said. Currently, the company trucks LNG to drillers from a small Williams Cos. plant in Durango and an Exxon Mobil Corp. plant in southwestern Wyoming, to the DJ Basin northeast of Denver.
“In that area of Colorado there are some very restrictive emissions requirements and there has been a lot of public outcry against the energy industry,” in part because of the number of wells flaring, Aivalis said in a telephone interview.
The LNG carried by Prometheus is chilled to minus 260 degrees Fahrenheit (minus 162 Celsius), then warmed back into gas before being used in engines made by Caterpillar Inc., Cummins Inc. or General Electric Co. for drilling operations, some of which can run on diesel and natural gas at the same time, according to Aivalis. The more natural gas they use, the bigger the savings, he said.
The attitude shift comes amid an Environmental Defense Fund study published last month that estimated that the U.S. oil and gas industry was wasting $2 billion a year through emissions of methane, the main component of natural gas, across the supply chain. Last month, Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell Plc and BP Plc were among the energy producers discussing efforts to use gas as a cleaner, affordable power-plant fuel used in sync with renewables.
“You are seeing a millennial shift where people want to do the right thing,” Krishnamoorti said.
The economics too are increasingly favoring micro LNG. There are spots in the Permian basin where the price of gas is already negative, so producers are actually paying to “evacuate” gas, said Pablo Avogadri, global LNG platform leader at Baker Hughes. Instead of a salable asset for drillers, “gas is becoming an annoyance,” he said.
In the Permian, the first move toward LNG may come from the Delaware Basin in New Mexico, where Prometheus has been discussing options with potential customers, Aivalis said.
Siemens started working on micro LNG four years ago, Walhof said. The small production plants they’re planning would chill 30,000 gallons a day, compared with the 4 billion gallons a day produced in terminals on the Gulf Coast for export abroad.
Meanwhile, Baker Hughes, the world’s third-biggest oilfield services company, has been receiving requests for proposals for Permian LNG projects that can make the fuel available within a 500-mile region, Avogadri said.
The company is studying the question, Avogadri said,adding, “we still need to crack the cost equation.”
Krishnamoorti, meanwhile, equates the challenges of building out the micro LNG plant industry to the launch of Apple Inc.’s cutting-edge iPhone. “The problem with micro LNG is that we are in the first 2,000 iPhones,” he said. “The more experience you get, the more you can drop the cost. ”
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Prometheus Energy and National Grid Complete a Successful Winter Peaking project in Rhode Island
Houston, TX, – April 4, 2018 – Prometheus Energy Group, Inc. (“Prometheus Energy”), a leading supplier of liquefied natural gas (LNG) to the natural gas utility, pipeline, industrial and oilfield services sectors has completed a four (4) month long winter peaking service to augment National Grid’s distribution network in Rhode Island.
National Grid operates liquefied natural gas (LNG) facilities throughout New England and required a temporary LNG storage solution to supply LNG to an existing vaporizer this winter. The facility was operational from December through March to pump LNG to the vaporizer on demand in order to inject additional gas supply into their distribution network during cold winter conditions. Prometheus Energy has provided several similar virtual pipeline applications using LNG for winter peaking, integrity testing, existing pipeline reconstruction and bridging solutions in advance of pipeline connections. Prometheus Energy responded to the National Grid RFP with a unique equipment solution that was able to pump LNG at 750,000 scf per hour to meet the peak demand of National Grid’s network.
“We were faced with a dynamic challenge that required a specific equipment configuration as well as operational experience to complete the project. We selected Prometheus Energy based on these criteria and to provide a safe, reliable and professional service to meet our temporary peak shaving needs.” said Zachary Kinton, Lead Specialist of LNG Operations at National Grid.
“The combination of our proven equipment package and our extensive experience in winter peaking applications, provided National Grid with an effective temporary LNG facility designed to meet their winter demand,” stated Jim Aivalis, CEO of Prometheus Energy. “We worked closely with the National Grid team to ensure the project was designed, installed, and operated safe and reliably to meet the project requirements.”
Stabilis Energy Announces Acquisition
of Prometheus Energy
Prometheus to Operate as Independent Natural Gas Distribution Subsidiary
of Stabilis Nationally; Stabilis to Focus on LNG Production Assets
Beaumont, TX, March 7, 2018 – Stabilis Energy (“Stabilis”) announced that it has completed the acquisition of a majority interest in Prometheus Energy (“Prometheus”). The acquisition combines two of the leading liquefied natural gas (“LNG”) production and distribution companies to form a full-service LNG provider capable of delivering LNG to customers in any end market and location in North America. Terms of the transaction were not disclosed.
Prometheus will operate as the independent LNG distribution subsidiary of Stabilis. Prometheus provides mobile and stationary LNG solutions to industrial, utility, pipeline, high-horsepower and other remote customers. Customer solutions include supporting utilities with natural gas via LNG for flow assurance to address gas interruptions, gas curtailments and critical peak demand during extreme conditions. Prometheus will continue to purchase LNG from multiple producers to optimize fuel cost for its customers.
“We are pleased to announce the acquisition of Prometheus Energy,” said Casey Crenshaw, CEO of Stabilis Energy. “Prometheus was a pioneer in the LNG industry and it remains the premier small-scale LNG distribution and service company in the world. We believe this transaction will allow each company to grow aggressively in LNG production and distribution, respectively.” Crenshaw continued, “Stabilis’ LNG production plants will continue to provide reliable and cost-effective LNG to all customers and distribution channels.”
Prometheus Energy Group, Inc. Announces a Strategic Transaction Expanding its LNG Distribution Footprint in North America
Prometheus to Acquire Stabilis Energy’s LNG Distribution and Services Business for Customers Across North America Outside of Texas and the Gulf Coast
HOUSTON, Sept. 27, 2017 /PRNewswire/ — Prometheus Energy Group, Inc. (“Prometheus”), a leading supplier of liquefied natural gas (“LNG”) fueling solutions and services announced that it has signed definitive agreements to acquire Stabilis Energy’s LNG distribution and services business in North America outside of the Texas and Gulf Coast regions. The transaction further expands Prometheus’ ability to better serve customers in the gas utility, pipeline, energy, process and remote power generation markets. Included in the transaction, Stabilis Energy will acquire Prometheus’ 20,000 gpd LNG production facility in Lisbon, Utah. The terms of the transaction were not disclosed.
“We believe this further strengthens our platform providing LNG supply, distribution and technical services to customers across all of North America and specifically within the Rocky Mountain Region,” said Jim Aivalis, CEO and President of Prometheus. “This transaction allows Prometheus to focus on its core competencies of providing total natural gas fuel and delivery solutions to customers utilizing LNG or CNG.”